Company of arrested Russian billionaire leaves Astana International Exchange
At an extraordinary general meeting, shareholders of Cyprus-based Ros Agro approved the delisting of the company’s global depositary receipts (GDRs) from the Moscow Exchange (MOEX) and the Astana International Exchange (AIX), according to Ros Agro’s website. The decision comes amid criminal proceedings against the holding’s founder Vadim Moshkovich, who is accused of large-scale fraud in Russia.
Ros Agro’s main asset is Rusagro, a Russian food producer and a leading player in the local margarine, mayonnaise, sunflower oil, sugar and pork markets. The current delisting is a result of a process initiated last July when Rusagro was included in the list of economically significant organizations. Under Russian law, this designation allowed the company’s Russian shareholders, who held stakes through the foreign holding entity, to obtain direct control by converting GDRs into shares.
At the same time, foreign beneficiaries of companies deemed economically significant may face suspension of their corporate rights. The Russian Ministry of Agriculture, which oversees the activities of companies such as Rusagro, filed a lawsuit in a Russian court seeking to enforce such a suspension. The holding’s management board described this move as the first step toward redomiciliation — the procedure of changing jurisdiction — from Cyprus to Russky Island in Primorsky Krai, Russia. This area includes two special administrative zones with favorable tax regimes, commonly referred to as «Russian offshores.» Both the initial and court of appeal rulings upheld the ministry’s claim, suspending Ros Agro’s corporate rights.
Until recently, both Ros Agro’s GDRs and Rusagro’s common shares were trading on the MOEX. In December, the platform halted trading in the receipts. In addition, Ros Agro’s GDRs were traded on AIX. In March 2022, the London Stock Exchange (LSE) suspended transactions with Ros Agro’s GDRs amid the widespread anti-Russia sanctions imposed by Western countries. As a result, following the delisting process, only Rusagro’s shares, including those converted from GDRs of Ros Agro, will continue to trade on the MOEX.
In late March, a Russian court issued a two-month arrest warrant for Vadim Moshkovich, the holding’s founder and its majority shareholder. The entrepreneur, ranked 55th among Russia’s richest businessmen with a fortune of $2.7 billion, is accused of large-scale fraud in the acquisition of the Solnechnye Produkty holding. According to investigators, Moshkovich’s actions may have caused up to 30 billion rubles (approximately $353.1 million) in damages to his business partners through this deal.
